USDJPY Daily Outlook – How are you doing with the rollercoaster ride of 2020? The Bank of England is the latest central bank to take action to support the economy during the Coronavirus outbreak. The US weekly jobless claims jumped due to the coronavirus layoffs.
The Federal Reserve is likely to significantly boost its government-bond purchases beyond the $500 billion minimum it committed. And the Trump administration is considering intervening in the Saudi-Russian oil-price war with a diplomatic push to get the Saudis to cut oil production.
We have entered a new level of uncertainty and doubt, however, there’s more opportunity than ever in the forex market, as long as you can tolerate the risk. The US dollar continues to remain king.
Today I’m looking at the USD/JPY pair, which is following a similar path as the USD/CHF pair that I covered yesterday. The pair has just broken above the daily Ichimoku cloud after bottoming out at 101.
However you look at the big picture, you’d notice that the pair has continued to create lower highs since 2015. These are not ordinary times, though… so we could see a break of this trend if traders continue to turn to the USD during the pandemic. That could bring the pair up to recent highs of 112 and perhaps even higher.
Which direction do you think the USD/JPY pair will take next week? Head over to the comments section and let me know!
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